(8)Where—(a)any person buys or acquires any [securities or] units within a period of three months prior to the record date;(b)such person is allotted additional [securities or] units without any payment on the basis of holding of such 99[securities or] units on such date;(c)such person sells or transfers all or any of the [securities or] units referred to in clause (a) within a period of nine months after such date, while continuing to hold all or any of the additional [securities or] units referred to in clause (b),then, the loss, if any, arising to him on account of such purchase and sale of all or any of such [securities or] units shall be ignored for the purposes of computing his income chargeable to tax and notwithstanding anything contained in any other provision of this Act, the amount of loss so ignored shall be deemed to be the cost of purchase or acquisition of such additional [securities or] units referred to in clause (b) as are held by him on the date of such sale or transfer.Explanation.—For the purposes of this section,—(a)"interest" includes a dividend ;(aa)"record date" means such date as may be fixed by—(i)a company for the purposes of entitlement of the holder of the securities to receive dividend; or(ii)a Mutual Fund or the Administrator of the specified undertaking or the specified company as referred to in the Explanation to clause (35) of section 10, for the purposes of entitlement of the holder of the units to receive income, or additional unit without any consideration, as the case may be;Following clause (aa) shall be substituted for the existing clause (aa) of the Explanation to section 94 by the Finance Act, 2022, w.e.f. 1-4-2023:(aa)"record date" means such date as may be fixed by—(i)a company;(ii)a Mutual Fund or the Administrator of the specified undertaking or the specified company referred to in the Explanation to clause (35) of section 10; or(iii)a business trust defined in clause (13A) of section 2; or(iv)an Alternative Investment Fund defined in clause (b) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992),for the purposes of entitlement of the holder of the securities or units, as the case may be, to receive dividend, income, or additional securities or units without any consideration, as the case may be;(b)"securities" includes stocks and shares ;(c)securities shall be deemed to be similar if they entitle their holders to the same rights against the same persons as to capital and interest and the same remedies for the enforcement of those rights, notwithstanding any difference in the total nominal amounts of the respective securities or in the form in which they are held or in the manner in which they can be transferred;(d)"unit" shall have the meaning assigned to it in clause (b) of the Explanation to section 115AB.Following clause (d) shall be substituted for the existing clause (d) of the Explanation to section 94 by the Finance Act, 2022, w.e.f. 1-4-2023:(d)"unit" shall mean,—(i)a unit of a business trust defined in clause (13A) of section 2;(ii)a unit defined in clause (b) of the Explanation to section 115AB; or(iii)beneficial interest of an investor in an Alternative Investment Fund, defined in clause (b) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992), and shall include shares or partnership interests.
